Can Bankruptcy Stop Foreclosure - Other Options To Stop Foreclosure
Can bankruptcy stop foreclosure? The general answer to this is yes it can. Filing Chapter 13 bankruptcy can stop creditors from trying to collect any money from you. This includes foreclosure proceedings. But you have to make sure you do it right and keep up with your bankruptcy payments.
Banks are not in the real estate business - they do not want your home. Because of the large number of potential foreclosures right now, banks are doing everything that they can to keep a house out of foreclosure. If you are only a couple of months behind on your mortgage payments, talk to your lender immediately to try and work out a plan before any action is taken. Once your mortgage becomes more than 90 days past due, it is harder for a traditional lender to work out a solution for you.
If your mortgage is further past-due than this, and foreclosure proceedings have been started, there are still other options besides bankruptcy. After talking to a professional, if you feel that bankruptcy is your only option, go about it with a clear conscience. A lot of times people don't file because they feel it is wrong. But if you want to keep your house bankruptcy can stop foreclosure.
How can bankruptcy stop foreclosure? When you file you are telling the courts that you are willing to work out a payment plan to pay off the arrears of your mortgage. This can also work for an automobile that is in danger of being repossessed or has been repossessed. Chapter 13 allows you the opportunity and the time to get back on track. Basically you will be making payments to the court to pay off the arrears separate from your mortgage payments. The payments to the court are stretched over five years normally, so the monthly amount is usually manageable.
Don't wait until the last minute and lose your house. Contact a lawyer for more information. Keep the lines of communication open with your lender. You may be surprised how anxious they are to work things out.
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